2. Analyzing the external environment (Connect, Perform)

Reinforce your knowledge of the terminology used to discuss a firm's external environment by filling in the blanks in the following sentences.

The company Proctor & Gamble gained_________ by creating a new sponge product for its Mr. Clean brand, the Magic Eraser. People like the sponge's texture and its ability to clean surfaces throughout the house. (A first-mover, a barrier to entry, an incumbency advantage, bargaining power)

The __________is influenced by all of the other competitive forces. (potential of new entrants, bargaining power suppliers, bargaining power of buyer, rivalry among competitors)

Which of the following conditions give suppliers more power over the firms to which they sell?Check all that apply.

When the supplier makes a product for which consumers have many alternatives

When the supplier's industry is more concentrated than the buyer's industry

When the supplier sees a buyer as only a small part of its overall customer base

When the supplier can start a business similar to the buyer's business